Flowers Foods Hosts Analysts Event At New York Stock Exchange
Comments on bid for Hostess assets; provides operations/financial update
NEW YORK, March 20, 2013
NEW YORK, March 20, 2013 /PRNewswire/ -- At an event hosted for financial
analysts today and webcast live over the Internet, executives of Flowers Foods
(NYSE: FLO) commented on the company's bid to acquire Hostess bread brands and
bakeries. Executives also provided an overview of the company's growth
objectives and operational strategies and discussed year-to-date sales and
earnings. The meeting was held at the New York Stock Exchange.
(Logo: http://photos.prnewswire.com/prnh/20080530/CLF007LOGO )
Regarding Flowers' pending acquisition of Hostess' Wonder, Nature's Pride,
Merita, Home Pride, and Butternut bread brands as well as 20 bakeries and 38
depots, George E. Deese, chairman of the board and chief executive officer,
said, "The Hostess assets would fit well with our long-term growth strategy.
We are pleased with the outcome of the bankruptcy court review in which the
court approved the sale this week, subject to the finalizing of the sales
order, which we expect to occur shortly. However, this process is not over.
Now, the transaction must continue through the regulatory process. We
anticipate completing the transaction in the second half of the year. Because
the transaction is not finalized and for competitive reasons, we will not
share any specific plans regarding the pending acquisition.
"This is an amazing time for Flowers Foods. Our long-term commitment to
investing in bakeries, constantly improving efficiencies, delivering quality
and the best customer service, and building strong brands is paying good
dividends for us. Flowers Foods' year-to-date sales are up 20% to 25% and our
earnings outlook is strong," Deese said. "We are adding new customers and
locations, and we believe we are maximizing the opportunities available to us.
Recent acquisitions like Lepage Bakeries in the Northeast and the Sara Lee
brand of fresh bread, buns, and rolls in California have helped us extend our
geographic reach. We have strong brands, great products, and a seasoned
team—all factors that give me confidence in Flowers' ability to meet or exceed
Allen L. Shiver, president of Flowers Foods, discussed from an operations and
sales standpoint how the company is well-positioned for accelerated growth.
"Our strategy is proven. Our brands, such as Nature's Own and Tastykake, are
well established and deliver consistent quality and great taste. Flowers'
bakeries are among the most efficient in the country. Our distribution
networks for DSD ("direct-store-delivery") and our warehouse segments are
effective in delivering the products our customers need. Andwe believethe
Flowers team is simply the best in the industry," said Shiver.
Bradley K. Alexander, president of Flowers Bakeries, provided an update of the
company's recent Lepage Bakeries integration, as well as an overview of
Flowers' roll out of Sara Lee fresh breads, buns, and rolls in California
following the completion of the acquisition from BBU, Inc.
In his comments, R. Steve Kinsey, executive vice president and chief financial
officer, said, "We are very optimistic about our fiscal 2013 outlook. We are
seeing strong sales and earnings trends, and we expect to deliver a strong
first quarter. However, due to the pending Hostess transaction, we are limited
in regard to the information we can provide on the full year."
Deese closed the meeting by reiterating his confidence in the Flowers team.
"While the marketplace dynamics and competitive landscape continue to evolve,
I am more confident than ever in Flowers Foods' ability to execute our
strategies and continue to deliver value to our shareholders, our customers,
and our consumers," he said.
Flowers Foods broadcast the event live over the Internet. The archived
presentation can be accessed on the company's Web site www.flowersfoods.com.
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of
the largest producers of packaged bakery foods for retail and foodservice
customers in the United States with 2012 sales of $3.05 billion. Flowers
operates 44 bakeries that produce a wide range of bakery products. Among the
company's top brands are Nature's Own and Tastykake. Learn more at
Statements contained in this press release that are not historical facts are
forward-looking statements. All forward-looking statements in this press
release, including, but not limited to statements regarding the timing of the
transactions and required approvals, the combined company's plans, objectives,
expectations and intentions, the expected impact of the acquisition on the
future earnings of Flowers, anticipated benefits of the acquisition and
expected business opportunities that may be available, and the manner in which
Flowers intends to finance the acquisition, are subject to risks and
uncertainties that could cause actual results to differ from those projected.
Other factors that may cause actual results to differ from the forward-looking
statements contained in this release and that may affect the company's
prospects in general include, but are not limited to, (a) risks relating to
(1) the court-approved bankruptcy process and the ability of the parties to
obtain necessary regulatory approvals, satisfy all applicable conditions and
consummate the acquisition, (2) the ability of Flowers to integrate the
acquired assets into it existing business and operate the combined business
effectively and (3) the ability of Flowers to achieve the anticipated sales
and earnings for 2013, (b) competitive conditions in the baked foods industry,
including promotional and price competition, (c) changes in consumer demand
for our products, (d) the success of productivity improvements and new product
introductions, (e) a significant reduction in business with any of our major
customers including a reduction from adverse developments in any of our
customer's business, (f) fluctuations in commodity pricing, (g) our ability to
fully integrate recent acquisitions into our business, and (h) our ability to
achieve cash flow from capital expenditures and acquisitions and the
availability of new acquisitions that build shareholder value. In addition,
our results may also be affected by general factors such as economic and
business conditions (including the baked foods markets), interest and
inflation rates and such other factors as are described in the company's
filings with the Securities and Exchange Commission.
SOURCE Flowers Foods, Inc.
Contact: Investor, Marta Jones Turner, +1-229-227-2348, Media, Keith Hancock,
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